Dairy farmers across the country will be expecting a higher milk price for October supplies now that markets have been an upturn globally.

That's according to chairperson of the Irish Creamery Milk Suppliers' Association (ICMSA) Dairy Committee, Noel Murphy,.

With the announcements of October milk price imminent, Murphy said that a combination of stronger Global Dairy Trade (GDT) results, an increase in the Ornua PPI, ‘firming’ European commodity markets and the continued increased demand for proteins all point towards an improved milk price outlook.

“The notably positive movement that we have seen across international dairy markets in recent weeks must now be reflected in the milk price paid to Irish dairy farmers," Murphy said.

"The latest Ornua PPI shows a gain of 2.7c/L on the month to 40.9c/L and this must be the minimum base price that farmers should expect from their co-ops this month."

The latest GDT auction recorded a 3% increase in the overall GDT Price Index, with Whole Milk Powder increasing by 5.9% and Skim Milk Powder rising by 3.1%.

The ICMSA Dairy chair added that the GDT results were "particularly significant because they build on a series of firmer auction outcomes and indicate growing confidence across key importing regions".

"The importance of the latest GDT auction is not just the increase itself but the fact that we are seeing sustained upward momentum in the products that underpin Irish milk values."

The farm organisation's dairy chair also noted the continuing strength in European commodity markets, with Dutch and wider European quotations remaining at levels that he said will translate to stronger milk returns, despite the high volumes of milk production across the main exporting countries.

The ICMSA has stated that industry observers would be especially struck by the fact that Skim Milk Powder values have strengthened considerably in recent months.

“Irish milk suppliers have faced a very prolonged period of significant cost pressures recently, from feed and fertiliser to compliance and environmental costs," Murphy said.

"When market indicators are positive - as they are now – then farmers must receive their fair share of that value and without delay.

"ICMSA will expect a positive response from all processors in the coming weeks; the rise in market sentiment and prices must translate to a rise in farmer milk price in the forthcoming announcements of October milk prices," he said.